A House committee has sent a letter to four US federal agencies and 5 cryptocurrency exchanges asking for information on what they are doing to combat cryptocurrency fraud and swindling.
Congress questions regulators and Crypto exchanges
The House Oversight and Reform Committee sent letters to four US federal agencies and 5 crypto exchanges on Tuesday in an attempt to curb crypto-related fraud and scams.
The four agencies measure the Treasury Department, the Federal Trade Commission (FTC), the Commodity Futures Trading Commission (CFTC), and therefore the Securities and Exchange Commission (SEC). Square measure of 5 crypto commercialism platforms Coinbase, FTX US, Binance US, Kraken and Kucoin.
The letters are signed by Rep. Raja Krishnamurthy (D-IL), asking for information on the steps he is taking to combat cryptocurrency-related scams and fraud and additional measures. The letters.
Krishnamoorthy, Chairman of the Committee on Economic and Consumer Policy commented:
“Scammers have cashed in on the skyrocketing costs and overnight riches by luring both professional and amateur investors into cryptocurrency.”
The FTC said in June that since the beginning of 2021, more than 46,000 people have lost more than $1 billion in crypto fraud. “This is about one in four rupees lost compared to other payment methods,” the regulator said.
“The lack of a central authority to flag suspicious transactions, the immutability of transactions, and therefore the limited understanding of the underlying technology by many customers and investors make cryptocurrency a very popular method of operation for fraudsters,” Krishnamoorthy emphasized.
The leader added:
For these reasons, I am concerned about the proliferation of fraud and customer abuse associated with cryptocurrencies.
“Despite federal laws, cryptocurrency exchanges themselves must act to protect customers who transact through their platforms. By implementing audit policies, secure disclosure, deletion, and adopting alternative security mechanisms, cryptocurrency exchanges can, and should, create a secure environment for customers, the lawmaker explained.
The letters urge federal agencies and crypto exchanges to submit documents from January 2009 to September 12.
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